FAQs on NRI Investment Options in India

 India is fast emerging as a lucrative investment destination for NRIs because of its growing economy. The Indian economy offers various NRI investment options. Also, it offers higher returns on the funds as compared to the US and other European countries. 

What are the Various NRI Investment Options available in India?

 
The various NRI investment options available in India include:
  • Investment in Mutual Funds.

  • Investment in Equity Markets.

  • Company Fixed Deposits.

  • Non-Convertible Debentures of Companies.

  • Investment in Real Estate.

  • Investment in Government Securities.

  • Investment in National Savings Certificates.

  • Deposits in Indian Bank Accounts.  

Are there Different Methods of Payments Available for NRI Investment Options?

 
An NRI can opt any of the following methods to make payments for his investments in India:
 
  • An NRE Account (Non-Resident External Rupee Account).

  • An NRO Account (Non-Resident Ordinary Rupee Account).

  • A FCNR Account (Foreign Currency Non-Resident Account).   

NRI Investment Options: What are the 24% Schemes?

 
The ‘24% Scheme’ permits Indian companies, apart from those operating in the agricultural sector, to issue 24% of their debentures and shares to NRIs with repatriation benefits. 
 

NRI Investment Options: Can NRIs Invest in the Aviation Industry?

 
Yes, an NRI is allowed to invest in the aviation sector. Further, 100% equity investment is allowed, in consonance with the RBI’s rules. However, repatriation is allowed after 5 years of transactions and only from the accumulated forex earnings, after due taxes are paid.
 
 

 

Final Legal Take Away Tip: To acquire property through NRI investment options, an application has to be submitted in the prescribed manner to the RBI, through an authorized branch of an Indian bank. The RBI has empowered some branches of commercial banks to conduct business under Portfolio Investment Scheme, on behalf of NRIs as these branches are mainly located near to the stock exchange.
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Non-resident Indians or NRIs who are interested to invest in Indian sharemarket are now increasing in numbers and it is the right time too to keep an eye on the Indian share market for a direct investment or through mutual funds. NRI investment in India has multiple benefits and profit making advantages if utilized effectively.

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